In the Cambridge-Oxford university rivalry, Cambridge has gained an edge—when it comes to growth in the real-estate market.

For centuries, the British universities of Oxford and Cambridge have been locked in fierce competition, both academic and sporting. But in terms of real estate Oxford has always held sway over its rival—until now that is.

New research by real-estate brokerage
Savills
has found that, for the first time in living memory, the average price in Cambridge (£367,585, or $629,945) has inched ahead of Oxford (£364,186, or $624,120). Over the past decade, prices in Cambridge have risen by 61%, compared with 37% in Oxford.

A room inside the Great Shelford home
Savills

Chris Carey,
head of residential sales at Bidwells estate agents, attributes Cambridge's spurt to farsighted planning by the city council. Over the past decade the city has become a hub for international biomedical and technological firms like
AstraZeneca,Toshiba
and Philips, resulting in a shortage of housing. So while the picturesque historic center of the city remains sacrosanct, the council has facilitated development on industrial sites and areas on the outskirts of town.

The council has even allowed some high-rise buildings—by historic Cambridge's standards—notably the Marque, an almost sold-out, nine-story apartment block nearing completion about half a mile from the city's train station. A two-bedroom apartment with one bathroom (867 square feet) at the Marque is priced at $728,000, while a three-bedroom, two-bathroom apartment there (2,700 square feet) costs $2.6 million.

Another room in the home
Savills

Cambridge's planners have also encouraged contemporary architecture. "I think the feeling has been against pastiche," said Mr. Carey. "Cambridge is an innovative city, and architecture ought to make a statement to that effect."

Buyers of these modern homes are a mix of local downsizers, investors from Cambridge and London, and some overseas residents, often from the Far and Middle East and the U.S. "It is often because they have children who are studying at the university and [the family] can use the apartment" when visiting, Mr. Carey said.

As an alternative to new construction, fine Victorian houses can be found southeast of the city center and close to the university's botanic garden, said
Ed Meyer,
a director at Savills. Buyers here include exiled Londoners as well as expatriates, often university alumni, but not—so far—overseas buyers. Nonetheless the domestic demand is strong. Over the past six months, Mr. Meyer estimates that prices in this area have risen by around 10%, reaching the $1,700-a-square-foot mark.

Of course, overseas buyers are having an impact on both Oxford and Cambridge because both schools attract students from around the globe. An Oxford University spokesman said 16% of this year's undergraduate intake is from overseas. At Cambridge, the newest class of students in the fall of 2013 included 464 overseas students, 12.4% of the total.

In Oxford, however, no major new residential buildings are in the works for proud parents to buy. "The issue is space," said
Glyn Buckley,
manager of Winkworth estate agents. "We don't do high-rises in Oxford. There are no empty sites, and there are planning laws to stop you from knocking down houses."

Buyers who want to live in Oxford are generally restricted to period housing. The hottest spot is undoubtedly North Oxford, about half a mile from the city center and close to two of the city's most prestigious schools for children, Dragon School and Oxford High School.

Mr. Buckley said the sprawling Victorian homes in this area sell within days. "It is just the nicest, leafiest part of Oxford, with the best, biggest houses," he explained.

A typical six-bedroom detached villa in North Oxford, for example, would list for about $6 million. Still, a similar home in central London would see an extra zero added to the price tag. That pits local buyers against buyers from London, Russia and China looking to invest in a good place to raise children.

In prime residential areas, Oxford still has an edge, with an average home price of $2.36 million, a 13% increase over 2012, according to Savills. Prices of prime Cambridge properties rose by 8.6%, to an average $2.26 million.

Mark Charter,
a partner at brokerage Carter Jonas, predicts that Oxford's residential market will see the most growth in the sale of homes priced below $3.42 million. These escape top rate Stamp Duty (7%) and won't be affected should a "Mansion Tax" on high-value homes be introduced. Britain's Labour Party is committed to imposing an annual levy, of unspecified amount, on homes valued at $3.42 million-plus if it wins next year's general election, a prospect which is increasing nervousness among buyers across the U.K.

"I think Oxford is more of a natural progression out of London just in terms of where it is, and in Oxford there is very little space to grow," Mr. Charter said. "I can easily see prices growing another 5% to 10% in the next year."